OXFORD, United Kingdom—European cell phone operators will see Bluetooth-enabled devices generate revenues of US$2 billion by 2006, claims a new market study conducted by Pyramid Research. The short-range wireless technology is, according to the company, only months away from making an impact on Western Europe even though the initial impact will be small. The momentum, however, is expected to build quickly.
Analysts with Pyramid claim that, as operators struggle to reduce customer churn, Bluetooth-enabled services will have to become part of the integrated service mix, regardless of the limited direct revenue impact. The company believes that the 175 million mobile users who pay for Bluetooth access in Western Europe in 2006 will generate US$2.1 billion of revenue, while indirect sources could provide income to dramatically increase this figure.
However, early Bluetooth products appear to suffer from interoperability problems or complex software installation procedures. Simple headset to cell phone communications appear to work well, when developed by the same manufacturer, but more complex Bluetooth networks involving products from various developers currently need an unacceptably high level of IT knowledge.
